Latest Tequila News

Hornitos(TM) Becomes the First Spirits Brand to Offer Consumers the Opportunity to Buy a Drink for a Friend via Mobile and Use Illuminating Packaging

Beam Global Spirits & Wine, Inc. (Fortune Brands, Inc. (NYSE:FO)), a global leader in premium spirits, and Hornitos(TM) Tequila, a member of the Sauza(R) family, announced today new technology partnerships to evolve with consumers' ever changing needs. Hornitos has found new ways to connect with consumers on-premise and in their daily lives through mobile and product technologies.

Read more: Hornitos Tequila Goes Mobile

Let the battle of the tequila towns begin.

Inspired by Tequila’s tourism and publicity campaigns, the Jalisco town of Amatitan is fighting for its own share of the tequila legend.

The municipality of Amatitan is claiming to be the home of Jalisco’s oldest “tequila” factory (the drink was known as vino mezcal in the 16th century). Amatitan has petitioned to declare May 27 as the World Day of Tequila, to be celebrated in the municipality.

“We get to keep the origins, and Tequila can keep the fame it already has,” municipal tourism chief Raudel Ocampo Rivera explained.

Read more: Disputing the Origin of Tequila

Jalisco company Tequila La Cofradia has found a successful and rapidly growing business opportunity in the form of a unique “chili pepper-cured” tequila called Agave Loco, containing faint lime and salt flavors. The new investment, in partnership with a Chicago wine and spirits distributor, is in step with several other tequileras that hope to boost foreign sales through distinctive liquors.

Agave Loco is sold exclusively in the United States with a retail price of 20 dollars according to La Cofradia’s general director Carlos Hernandez.

Agave Loco doesn’t have the “harsh alcohol burn” of a normal tequila, its makers say.
“The idea came from some Americans that came to Guadalajara and demonstrated their project, and developed it with us,” said Hernandez. The first order of 2,200 cases was exported to the United States last month.

Agave Loco’s website cites the “legend” of a man who finds a jar of chilis in his grandmother’s home, which were pickled in tequila instead of vinegar. The peppers were delicious and so was the leftover tequila, which was found to be smoother than its unspiced derivation. El Torito, a traditional drink from Guerrero, is taken from this idea, consisting of mescal, vinegar, green chili, onion, tomato and cheese. Agave Loco’s chili-curing process is a variation of the technique used to make El Torito.

Chili-curing, claims the company, reduces the “harsh alcohol burn” one experiences with a normal tequila, leaving only the aftertaste of jalapeño and serrano peppers, as well as a little heat.

Agave Loco will be promoted intensely in liquor showcases throughout the United States to establish its position on the market. The spicy drink has been well received so far thanks to successful marketing strategies.

Tequila Patron and Tequila Herradura are also refining their standing in the U.S. market. Hernandez noted that establishing a new brand can turn around a five- to six-million-dollar profit in the first year, but can expect to sell around 100 million dollars of product in the future once the company gains a stronghold. Many U.S. entrepreneurs see already-established tequileras as a reliable business venture and are investing big bucks.

Hernandez also expects to expand La Cofradia’s business in Russia by 400 percent. Plans are also being developed to export tequila in bulk to India.

Source: http://guadalajarareporter.com

The good news is record production of more than 280 million litres of tequila in 2007: the best year of the decade for tequileros. The bad news is an uncertain future, both for the unsold litres of tequila, and for their source, the area's agave plant. Part of this year's record production, unfortunately, came at the expense of growers. Tequileros chose to make more tequila as prices of agave plummeted to less than a peso per kilogram, compared to a record 18 pesos per kilo during the agave shortage crisis in 2000.

The year's record production, however, is good news for fans of añejo and extra anejo tequila. The standing inventory of tequila is now more than 185 million litres, most of which must be aged or go to waste. Tequileros say that storage costs and the taxation of "aged" products will create a maturing market of higher-quality products, even as it hits them in the pockets.

Source: http://guadalajarareporter.com

Deal to Lead to Funding of Children’s Charitable Trust

John Paul DeJoria, co-founder of Patrón® tequila – the world’s top-selling ultra-premium tequila – today announced an agreement that will make way for the funding of a children’s charitable trust, while investing in the continued growth of the company. Although the specific terms of the agreement are confidential, they provide for Mr. DeJoria to become principal owner of the parent company of The Patrón Spirits Company (“Patrón”), so that he can further his dedication to the development of the brand – a dedication that has spanned nearly two decades. As part of the transaction, Bacardi Limited, the largest privately held spirits company in the world, will purchase a significant minority stake in the company through a subsidiary, according to Barry Kabalkin, Vice Chairman of Bacardi Limited.

The transaction will result in a payment to the Estate of the late Martin Crowley in exchange for its interest in the company. In accordance with the terms of Mr. Crowley’s will, the Estate will contribute the money to the Windsong Trust, a charitable trust created by Mr. Crowley to support the education of underprivileged children across the globe.

Mr. Crowley teamed up with Mr. DeJoria, who is also the co-founder and Chairman of the Board of John Paul Mitchell Systems, to found Patrón® in 1989. “Martin and I shared a commitment to help those in need of assistance throughout the world, and I’m pleased to say that implementation of this agreement will make a truly meaningful difference to those who deserve it most,” explained Mr. DeJoria. He added, “The company has done extremely well, due in large part to our outstanding team of employees, and we have an incredible opportunity to build upon that success with Bacardi, while realizing Martin’s dream to help the world’s underprivileged children.”

Facundo L. Bacardi, Chairman of the Board of Bacardi Limited, said, “John Paul DeJoria and Martin Crowley are to be congratulated for creating an extraordinary, hand-crafted product and achieving its enormous success in the marketplace – and for their contribution to the growth of the tequila industry overall. We look forward to this new relationship and to working together.”

The Co-Executors of the Crowley Estate also are looking forward to the opportunities that will result from this agreement. “This agreement will ensure that Martin will be remembered for helping to educate disadvantaged children around the world,” said Co-Executor Gigi Osco-Bingemann. Co-Executor Vadim Fridman added, “Gigi and I are excited to finally begin to fulfill Martin’s legacy.”

Although Bacardi and Patrón intend to operate independently from each other and the agreement does not provide for changes in the day-to-day operations of Patrón or in Patrón’s management or distributor network, the relationship is expected to lead to beneficial synergies for the company.

“Bacardi and its brands have set many standards in the spirits industry and its worldwide experience can certainly help us grow in markets both inside and outside of the U.S.,” said Ed Brown, President and CEO of Patrón. “We look forward to gaining from their international experience as we continue to grow Patrón® around the world.”

Patrón is wholly owned by Caribbean Distillers Corporation, Limited, which also owns Anguilla Rums, Limited (owner of Pyrat® rum), CDC S.A. de C.V. (the Patrón® related Mexican operation), and Ultimat Spirits GmbH, worldwide distributor of Ultimat® ultra-premium Polish vodka.

Under the agreement, Bacardi will hold one seat on the board of directors of Patrón’s parent company. Mr. Kabalkin will be appointed to the board position. With respect to the new arrangements, Mr. Kabalkin commented, “Patrón® is one of the fastest growing products in the entire spirits industry, and becoming a significant shareholder is a fantastic opportunity for Bacardi.” Mr. Kabalkin added, “We are a family-controlled company with a strong entrepreneurial spirit and global culture, and are proud of our highly focused portfolio of iconic brands. We now look forward to teaming up with Ed Brown, with the goal of enhancing the size and scope of the market for Patrón® tequila, an already incomparable brand.”

The parties intend to close the transaction, which is primarily subject to certain court approvals, within approximately 60 days.

About The Patrón Spirits Company

Based in Las Vegas, Nevada, The Patrón Spirits Company imports and markets top-selling ultra-premium spirits, including Patrón® tequila, Pyrat® rum and Ultimat® vodka. Patrón® tequila, one of the fastest growing spirits in the world, is now available in more than 100 countries and islands across the globe. For more information visit www.patronspirits.com.

About Bacardi Limited

Bacardi Limited, the largest privately held spirits company in the world, produces and markets a variety of internationally recognized spirits. Bacardi Limited's brand portfolio consists of more than 200 brands and labels including: BACARDI® rum, the world’s number-one selling rum; GREY GOOSE® vodka, the world-leader in super premium vodka; DEWAR’S® Scotch whisky, the number-one selling blended Scotch whisky in the United States; BOMBAY SAPPHIRE® gin, the fastest-growing premium gin in the spirits industry; CAZADORES® blue agave tequila, one of the top-selling premium tequilas worldwide; MARTINI® vermouth, the world-leader in vermouth; and other leading brands. For more information, visit www.bacardilimited.com.

Contacts:
For The Patrón Spirits Company:
The Richards Group
Greg Cohen, 214-891-3544
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or
For Bacardi Limited:
Patricia Morgan, 441-295-4345
or
Patricia Neal, 305-573-8600
or
Burson-Marsteller
Amy Federman, 305-347-4343
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Source:
Businesswire.com